Somerset Capital Management is set to launch an offshore feeder fund for its flagship £1.4bn MI Somerset Emerging Market Dividend Growth fund, which is managed by Edward Lam.
The Ireland-domiciled fund will allow wealth managers running money for investors outside the UK the opportunity to invest in the OEIC.
Somerset's flagship fund has delivered returns of 13.4%, 34.9% and 42.4% over one year, three years and five years respectively, according to FE, while the IA Global Emerging Markets sector has averaged gains of 13.2%, 40% and 33% over the same period.
Since its March 2010 launch, the fund has seen returns of 86%, outperforming the MSCI EM index, which has gained of 54.7% over the same period.
Partner and head of marketing Oliver Crawley said the launch has come "as a direct result of demand and we feel it is a natural extension to our fund range".
The fund seeks to deliver risk-adjusted returns across the market cycle, investing in well-managed companies with high-and-sustainable or rising cash return on capital.
Lead manager Lam said the firm expects to see "at least a three to four year runway of 'fair weather' in emerging markets".
He added: "It is our belief that US and global fiscal account deficits have reached an inflection point, driven by a policy shift in developed countries away from austerity to greater spending by governments.
"We see this as a major trend driving global trade growth and increasing capital flows which will benefit emerging markets.
"As such, we believe the recent strong performance of emerging markets has further to run.
"I continue to believe that investing in high quality, cash generative companies at a reasonable price remains a great way to achieve success across the market cycle in emerging markets and is complementary to some of the many other offerings in the space."
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